Tax & Accounting Blog

CA: Sales Tax on Diesel to Increase on July 1

Effective July 1, 2011, the California statewide sales and use tax rate imposed on sales of diesel fuel will increase 1.87 percent. On the same date the current statewide sales and use tax rate (8.25 percent) applicable to sales of all tangible personal property is scheduled to decrease by one percent, to 7.25 percent. Therefore, beginning July 1, 2011, the sales and use tax rate applicable to sales of diesel fuel will be 9.12 percent (7.25 percent + 1.87 percent), plus any applicable district taxes.